Swedish telecommunications company Ericsson said in a statement, Friday, that the company's name and "certain officials" of the company were listed as defendants in a class action lawsuit in the United States for making false and misleading statements about the company's business in Iraq.
|A class action lawsuit against Ericsson in America|
Ericsson is at the center of a scandal over possible payments to ISIS in Iraq.
The US Department of Justice said on Wednesday that the company had failed to fully disclose the details of its operations in Iraq, in violation of a 2019 agreement.
"The complaint alleges violations of US securities laws in connection with allegedly false and misleading statements relating primarily to the company's compliance and disclosure policies, obligations and conduct of business in Iraq," Ericsson said in a brief statement.
Reuters was unable to reach an Ericsson spokesman for comment, according to the agency.
The case came to the fore last month before the publication of an extensive investigative report coordinated by the International Consortium of Investigative Journalism.
This investigation forced Ericsson to publish the conclusions of an internal investigation that spoke of possible acts of corruption over the years related to the Iraqi activities of the group.
These actions include the company's suspicion of paying money for land transport operations in areas controlled by ISIS, and it is believed that it ended up in the pockets of the jihadists.
Ericsson Group monitors identified “serious violations of the group’s compliance rules and business ethics” between 2011 and 2019, as the company acknowledged in mid-February, anticipating the International Federation’s investigation published in about 30 media platforms.
The company said that the investigation did not reveal the "direct involvement" of any employee "in financing terrorist groups."
ISIS controlled vast areas in northern Iraq and neighboring Syria in 2014, seizing all the joints of life and sectors in those areas, before it was defeated in 2017.
The latest information puts the Swedish company in an embarrassing position, especially since it is not the first time that it has faced an American court.
In December 2019, Ericsson paid $1 billion to the US judiciary to close prosecutions in corruption cases in five other countries: Egypt, China, Vietnam, Indonesia, and Kuwait, as part of a deal known as the "Delayed Public Prosecution Agreement".